March 29, 2012


Conference call is scheduled for March 30, 2012. See the time and dial in number below.

VICTORIA, BRITISH COLUMBIA, Mar 29, 2012 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI, FRANKFURT: FXT), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. Today the Company announces financial results for the full year ended December 31, 2011.

Mr. Daniel B. O’Brien, CEO, states, “We are very pleased to announce record revenue. 2011 revenue was 35% higher than revenue from the 2010 period and revenue growth is expected to continue in 2012 at a rate of 20 to 30 percent. Cash flow from operations increased by 50% in 2011. This allowed the Company to expand its working capital through lines of credit at very attractive rates.”


The NanoChem division continues to be the dominant source of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction and agricultural use to further increase sales in this division. In past years, the NanoChem Division sales have been less volatile quarter to quarter. However, due to increasing sales to agriculture, revenue seasonality may be more apparent.

Mr. O’Brien continues, “I want to stress how hard our employees have worked as FSI survived the recession and returned to impressive levels of growth. Processes have been improved, our aspartic acid factory reached completion and new products have been developed that will drive our growth for years to come. I look forward to reporting more record quarters and years to the shareholders along with other important milestones.”   

Conference call

** CEO, Dan O’Brien has scheduled a conference call for 11:00am EST, 8:00am PST, Friday March 30, to discuss the financials. To attend this call, dial 1-877-941-0844 (or 1-480-629-9835). The conference call title, ‘Fourth Quarter Financials maybe requested **

The above information and following table contain supplemental information regarding income and cash flow from operations for the 3 & 12 months respectively ended Dec. 31, 2011 and 2010. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income. The reconciliation of each of the Non-GAAP financial measures is as follows:      


Consolidated Statement of Operations

For 3 & 12 Months Ended Dec. 31 (12 Months Operating Cash Flow)

(12 month audited / 3 month unaudited)


3 and 12 month revenue ended Dec. 31




3 month

3 month revenue


$    3,369,898   

$   2,596,082

12 month revenue

12 month


$  15,518,635

$  11,491,401

Net income (loss) GAAP

$       182,990

$     (190,080)   

Net income (loss) per share GAAP

$             0.01

$           (0.01) 

12 month weighted average shares used in computing per share amounts – basic GAAP



The following calculations begin with: Net income (loss) GAAP

12 month Operating Cash Flow

ended Dec. 31

Operating cash flow (12 month). NON-GAAPExcludes: a and b as indicated and as listed below

$ 1,894,818 a,b

   $ 1,038,129 a,b

Operating cash flow (12 month). NON-GAAP – Excludes: a.b and c as indicated and as listed below

$ 2,790,427 a,b,c

   $ 1,908,365 a,b,c

Operating Cash flow per share (12 months) – basic. NON-GAAP - Excludes: items “a,b and c” as indicated and as listed below.

$          0.21 a,b,c        

   $        $0.14 a,b,c

Non-cash Adjustments (as per 12 month Statement of Cash Flow)

 Adjustments – other (as listed below)

$    586,196 b

$ 2,021,241 a,c

   $    538,029 b

   $ 1,560,416  a,c

12 month basic weighted average shares used in computing per share amounts – basic GAAP



Notes: certain items not related to “operations” of the Company have been excluded as follows.

a)  NON-GAAP- “income tax (Net Income Tax: 2011 = $1,125,632,   2010 = $690,180)

b NON-GAAP- Non-cash Adjustments for 2011 and 2010, depreciation, stock compensation expenses, write down of investment and inventory, loss on sale of equipment, other expenses, and shares for service (see - Consolidated Statement of Cash Flow).

c) NON-GAAP- Other Non-operating adjustments – add “New factory construction costs (2011 = $895,768,  2010 = $870,236), deduct interest income (interest income: 2011 = $159,   2010 = $0) which are unrelated to the “current operations” of the Company. 

Safe Harbor Provision

The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements.  Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties.  These forward-looking statements may be impacted, either positively or negatively, by various factors.  Information concerning potential factors that could affect the company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.